Main points of investment
Achieve a profit of 872 million yuan in 2022, an increase of 10.7% over the same period last year:
In 2022, the company achieved an income of 2.679 billion yuan, an increase of 22.04% over the same period last year; a profit of 872 million yuan, an increase of 10.7% over the same period last year; and a basic profit per share of 9.9%. During the year, the net asset value reached RMB 8.09 billion, with a net asset of RMB0.91 per share and a proposed dividend of HK $0.035 per share. The profit growth of the company is lower than the income growth, mainly because the profit margin of the new parity project is lower than that of the stock green power subsidy program, coupled with the rise in management costs, overseas dividend tax and the tax rate rise caused by the expiration of income tax relief for some projects.
The asset quality is further optimized and the project reserve is abundant:
By the end of 2022, the proportion of the installed capacity of the company's parity projects reached 60%, the proportion of green power subsidy projects dropped to 40%, and the asset quality was further optimized. At the same time, the balance of green power subsidy receivable is RMB 810 million, down 39% from the same period last year, and the cash flow continues to improve. By the end of 22, the company's operating rights and interests have been installed with 3588MW, and the proposed scale of 2126MW 4.8GW is planned to be installed in 23 years to achieve the 4.8GW target by the end of 23. In 2022, the company added the construction target of 1355MW high-quality wind power project, the total approved capacity is 1556MW, and the new national approval project 4GW (scenery 2GW), the project reserve is abundant, which will effectively guarantee the future installation growth rate.
From January to February 2023, electricity generation increased by 31% compared with the same period last year, showing a good performance:
From January to February 2023, wind power generation increased by 31.44% compared with the same period last year; solar power generation increased by 26.62% compared with the same period last year; and total equity generation increased by 31% over the same period last year. Among them, in February 2023, the company's wind power generation increased by 17.24% compared with the same period last year; solar power generation increased by 15.26% compared with the same period last year; and the total equity generation increased by 17.06% compared with the same period last year. Compared with their peers, the company's power generation growth in February performed well, which further verified the quality of the company's power plant assets.
Maintain the buy rating with a target price of HK $0.98:
We update the company's target price of HK $0.98, which is equivalent to 7 times and 5.6 times of 2023 and 2024 and PE. The target price has 38% room to rise from the current price and maintain the buy rating.